newbie ?: does my new accountant know what she's talking about?

[Jill Curran]

Newb question here. I read the BP posts and have been keeping track of the time I spend managing my two duplexes, both bought this year, because I read there was a tax reason to do so. When I recently met with an accountant (first time, have always done my own taxes) I mentioned this. She said I didn't need to that. She emailed me this: "If you have a profit on rentals, you will receive the qualified business income deduction, but if you want to, you can track your time just in case the IRS comes out with something new that is retroactive, you would have it." I thought to get safe harbor I have to track to my time. (I confess I don't understand if safe harbor is different from her "qualified business income deduction.") So do I need to be tracking my time to get my max deductions, assuming I have profit?

My secondary question is does this accountant know what she's talking about because I surely do not. 

Thank you all for your help! Love this forum!

Jill

[Eamonn McElroy]

If you want to claim you are a real estate professional, you will need contemporaneous records detailing time spent.  If you are selected for examination the IRS will ask for them.

Are you subject to the Net Investment Income Tax (NIIT)?  If you are you have an even more compelling reason to try to qualify as a real estate professional and make the rental taxable income non-passive.

It seems your accountant is focused on the QBID (IRC Sec 199A) while you are hinting at and asking about the passive activity loss rules (IRC Sec 469).

For IRC SEc 199A, you do need contemporaneous records if you are claiming the safe harbor for the 2019 and forward tax years.  You do not need contemporaneous records for the 2018 tax year.